Iseq's slide tracks retreat in values across Europe

Iseq:2,884.40 (–49.38) Settlement date:June 15th

EUROPEAN STOCKS tumbled yesterday, with the Iseq index declining 1.7 per cent, in line with the major European indices, which finished the day down 1.25-2 per cent.

National benchmark indexes declined in all of the 18 western European markets amid concerns about the strength of the economy, with Germany’s DAX slipping 1.3 per cent despite the Bundesbank’s raising of economic growth forecasts.

On the bond markets, the yield on 10-year Irish Government bonds rose by 16 basis points to 11.24 per cent as uncertainty about the Greek economy continued even as the Greek cabinet backed new budget cuts.

The Dublin market’s biggest stock, building materials group CRH, was also one of the major fallers on the day, declining almost 3.2 per cent to €14.08 – a drop of 46 cent compared to the previous day’s closing price.

Paper and packaging group Smurfit Kappa, one of the more active stocks on the day, lost more than 4 per cent, closing at €7.97.

Ryanair managed to contain its capitulation to the bearish market sentiment, dropping less than ½ per cent to €3.56, while DCC fell 3.2 per cent to €20.32. The industrial holdings group published its annual report, which revealed a near 12 per cent decline in its top executive pay.

Meanwhile, it was revealed that Continental Farmers has filed to list its shares on the Irish junior market, the ESM. Agrifood group Origin Enterprises has a 39 per cent stake in the company. There was little trading action in Origin and it closed flat at €3.85.

Drinks group C&C fell almost 3 cent to €3.57, despite what analysts at stockbrokers Bloxham called “good mood music” for the company from UK pub operator Fuller Smith. It revealed sales in the nine weeks to June rose almost 7 per cent.